A Socialbox.biz blog post update by Jenni (June 2018)
When implementing a Corporate Responsibility program for the first time, many companies can feel overwhelmed and intimidated. After all, creating any new corporate policy from scratch can require plenty of preparation, oversight, and implementation of metrics to measure success. However, studies have consistently shown that CSR programs are worth the time investment on the front end.
Some of the proven benefits of an effective CSR program include:
- Some of the proven benefits of an effective CSR program include:
- Increased revenue and profits
- Increased loyalty from stakeholders such as consumers, suppliers, and investors
- Increased employee engagement and retention rates
- Decreased energy costs and improved efficiency with sustainable energy programs
- Decreased environmental impact through donation programs
- Increased visibility in the business community through public relations recognition, awards, and index listings
- Healthier communities with more stable economies
Evidence of increased profits
- Many studies have been conducted to measure the impact of CSR programs on a corporation’s profitability. Here are just a few:
- In a review of over 200 academic studies on CSR, Oxford University found that found an increase in stock prices.
- A study conducted by London and Harvard Business Schools shows that beginning in 1997, business analysts realized a perception shift on the importance of CSR. Since then, corporations with CSR policies have seen a .
- In a survey of 556 US corporations, said their company’s bottom line can be improved with CSR programs.
- A 2003 in-depth analysis 52 prior studies on this topic found a between both CSR and environmental responsibility programs with profitability.
Other Positive Benefits
More visibility to investors: Certain corporate indexes are only available to corporations with aggressive CSR programs. For example, indexes corporations which have proven their dedication to ethical environmental, social, and governance practices. The is also used by investors who want to partner with ESG-friendly businesses.
Greater attractiveness to investors: Studies have shown the number of investors who value socially responsible businesses is increasing. For example, this shows growth over time in investments made in corporations with CSR programs. Additionally, reported last year that companies with CSR programs attract more investors and long term stability.
More efficient operations: A review of on corporations with CSR programs found that 88% of these corporations experienced improved operational performance. Additionally, 90% of the corporations experienced lower costs at the organizations.
The ongoing issue with these studies
Despite empirical evidence that CSR programs are vital for the ongoing financial success of contemporary businesses, of corporations have established sustainable CSR practices. This is often because CSR policies are written into company handbooks and board policies without the thoughtful implementation of any actionable steps to set up a CSR program. Additionally, many corporations do not set up metrics systems to ensure CSR programs are meeting their goals.
SocialBox.Biz can help your corporation set up locally focused, sustainable CSR programs to support your profit margins and surrounding community. Our programs are easy to implement into your everyday operations, and support environmental and social causes. We can also coach your executives on how to measure short term and long term impact of your CSR programs and leverage this impact in your PR strategy.
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